Harley-Davidson's LiveWire To Become First Publicly Traded EV Motorcycle Company In The U.S.

(RTTNews) - Harley-Davidson, Inc. (HOG) and AEA-Bridges Impact Corp. (IMPX), a special purpose acquisition company sponsored by executives of AEA Investors and Bridges Fund Management, announced they have entered into a business combination agreement under which AEA-Bridges will combine with LiveWire, Harley-Davidson's electric motorcycle division, to create a new publicly traded company. Upon closing of the transaction, Harley-Davidson will retain an equity interest in LiveWire of approximately 74%, ABIC's shareholders will own approximately 17%, and ABIC's founders and KYMCO will own approximately 4% each.

The combined company is expected to have an enterprise value of approximately $1.77 billion and post-money equity value of approximately $2.31 billion at closing. Its common stock is expected to be listed on the NYSE under the symbol, LVW. The transaction will be financed by ABIC's $400 million cash held in trust, a $100 million investment from Harley-Davidson, and a $100 million investment from KYMCO, through a PIPE.

Jochen Zeitz, Chairman, President and CEO of Harley-Davidson, will be Chairman and serve as Acting CEO of LiveWire for up to two years. Ryan Morrissey will serve as President.

Established as a separate division in 2019, LiveWire is an all-electric motorcycle brand with a focus on the urban market. LiveWire has brand presence in North America and Europe, with planned expansion into additional markets including Asia.

Shares of Harley-Davidson were up 11% in pre-market trade on Monday.